Greed and Stupidity

Here's a very good article by David Brooks in the NY Times on two hypotheses that explain the causes and effects of the current crisis.

Here's the supporting article for the greed hypothesis and here's the supporting article for the stupidity hypothesis.The greed hypothesis is replete with facts while the stupidity hypothesis is bit more theoretical. I prefer the latter particularly from a conclusion viewpoint.

Following is an excerpt from the stupidity hypothesis.

"From the point of view of top management, the diversity of operations means that executives were managing assets and services with which they have little familiarity. This has led to the spread of pseudo-objectivity: the search for standardized measures of achievement across large and disparate organizations. Its implicit premises were these: that information which is numerically measurable is the only sort of knowledge necessary; that numerical data can substitute for other forms of inquiry; and that numerical acumen can substitute for practical knowledge about the underlying assets and services"

Numbers as a sole measure of performance...That sadly sounds very familiar!!